FRANKLIN TELECOM (FTEL) Message Board

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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL)

FTEL 0.682

-13.8%

Dec 30 3:59 PM EST

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To: SoliRA who wrote (24771)	1/10/1998 12:53:00 PM
From: gunther	Read Replies (1) of 41046

Lets see the answers to some of your questions.. 1) Is there a market? Frost and Sullivan says IT market is $ 63 billion Add the market of Fax which can run into billions also (I think it was $88 billion or so). 2) Can FTEL satisfy a worthwhile piece of that market? Lets go with Franks conservative vision: 1/63rd of above market: = 1 billion, say in 10 years from now to be even more conservative. 3) How does FTEL compare with potential or actual competitors for that slice? a) I think pretty good. Computer Telephony magazine and Syracuse University Demo tell about the quality of Ftels product. b) Ftel has only 10 competetiors but only 2-3 are in telephone to telephone market; others are in computer telephony. Many more might enter this market soon. c) Ftel has colocated with Worldcom. Worldcom has a contract to support FNet. At present, Ftel has access to the World (or 67% of its backbone to be more precise)in short. 4) Can FTEL meet production demands? You can read about facilities expansion and production capacities from the home page. I am sure this may not be an issue. Enough capital (it has already 7 million) could be raised to finance further expansion from the upcoming fnet-IPO. 5) Can FTEL market its product well? If no one knows about it, it won't go anywhere. If there is demand and availability of capital and savvy market professionals from WilTel, I do not see any problem. But lets wait and see. How many companies are out there with such a tremendous potential and consider how minimal is the risk in such an investment? Permit me to speculate in a conservative way: If the company makes a billion the value of this stock would be ten years from now (at a PE of 20; and at 25 million shares; assume a conservative profit of 25%) at approximately = 200; That is atleast 5000% return of today's investment. Happy Investing.

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